Sports Authority sets procedures for sale of substantially all assets

By Caroline Salls

Pittsburgh, March 3 – Sports Authority Holdings, Inc. requested court approval of the bid procedures for the proposed sale of substantially all of its assets, according to a motion filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

Under the proposed procedures, bids for parties interested in serving as stalking horse bidder are due by 5 p.m. ET on April 10. All other bids are due by 5 p.m. ET on April 20.

If a stalking horse bid is selected, the company said it may need to pay that bidder a break-up fee and expense reimbursement if it is not ultimately the high bidder.

Competing bids would be required to at least equal the amount of the stalking horse bid, plus the break-up fee and expense reimbursement and a minimum overbid amount to be set by the company.

If necessary, an auction will be held on April 24. The company has asked the court to schedule the sale hearing for April 26.

The bid procedures hearing is scheduled for March 29.

Sports Authority, an Englewood, Colo.-based sporting goods retailer, filed bankruptcy on March 2. The Chapter 11 case number is 16-10527.

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